In response to COVID-19, Export Development Canada (EDC) and its private sector investment partners are playing a critical role in supporting Canadian cleantech companies through EDC’s investment Matching Program.

The program was launched in April 2020, as an extension to the Business Credit Availability program (BCAP), which aims to support Canadian businesses during the COVID-19 pandemic. The goal of the investment Matching Program is to help Canadian companies execute on their commercialization and growth plans and bridge them over these challenging economic times. 

In response to positive industry feedback, in early June, the program was tailored to support the unique needs of Canadian cleantech companies. Specifically, one of the eligibility criteria for traditional businesses is a minimum of CAD $5 million in revenues (pre-pandemic).  In recognition of the generally earlier stage nature of the Cleantech sector, that criterion was reduced to a minimum of CAD $250k in revenues. Under the investment Matching Program, EDC is prepared to match institutional private sector venture capital (VC) investment of up to CAD $5 million, subject to certain standard eligibility criteria. The program operates at the pace of business, with commitments issued within five to ten business days of receipt of an application, and EDC is open to supporting a variety of private sector led structures.

As of August 13, 2020, EDC has approved or completed 39 transactions with an additional 12 transactions in due-diligence, totaling CAD $128.8 million in additional investment in Canadian companies. Of the 39 transactions, 16 are with cleantech companies. These numbers are a testament to the impact and value of the program for Canadian cleantech companies spanning sectors including transportation, advanced power electronics, agriculture technology, industrial water treatment, resource optimization and industrial efficiency.

EDC’s solutions complement the private sector and provide the capital that companies need in order to overcome some of the challenges facing the Canadian cleantech sector, including: 

  • Commercializing their products and services through first sales/contracts.
  • Acquiring the capital necessary to grow their business.
  • Having sufficient capital to attract the right talent necessary for specific companies to grow.
  • Providing performance bonding support when the market isn’t willing to take on technical risks when incumbent processes and solutions are working fine.

Quotes

Export Development Canada 

“This important initiative will support innovative cleantech companies whose exports have a positive impact on the environment. With EDC’s support of the cleantech sector through the investment Matching Program, we welcome the opportunity to work with new and established companies, and with institutional investment partners, to expand the impact of the program.” – Carl Burlock, Executive Vice President and Chief Business Officer, Export Development Canada

Cycle Capital Management – Venture Capital Firm (Montreal, Quebec)

“EDC’s investment Matching Program is ideal to support businesses in these difficult times because it enables a rapid deployment of liquidities in the market, while at the same time mobilizing private capital. Export Development Canada’s team’s skilled professionalism helps a lot of cleantech entrepreneurs benefit from increased funding to export products and pursue their company’s expansion.” - Andrée-Lise Méthot, Founder and Managing Partner, Cycle Capital Management

SensorUp Inc. – Internet of Things (Calgary, Alberta)

“Export Development Canada’s investment allows us to keep playing offense and continue on our path of developing greenhouse gas monitoring solutions for the oil and gas sector. We’re very excited to receive EDC’s backing because it clearly illustrates the federal government’s support for startup tech.  It’s incredibly reassuring to know someone’s got your back during these extremely uncertain times.” - Geoff Mair, Chief Executive Officer, SensorUp Inc.

Bus.com – Transportation (Montreal, Quebec) 

“The funding received from EDC is instrumental in key initiatives Bus.com is putting in place to overcome the COVID-19 pandemic and the collaboration with our investor Cycle Capital was key to this transaction's success. Funds will be used to further drive our product development and focus our efforts on business development projects to target public companies and demonstrate Bus.com's commitment to be a leader in the transportation and group travel space. More importantly, the funding will allow Bus.com to accelerate its R&D efforts and enable the increase of electric charter buses in North America.” - Maxie Lafleur, Chief Executive Officer, Bus.com

SWTCH Energy Inc. - Electric Vehicle Charging & Energy Management (Toronto, Ontario)

“We are grateful for the opportunity to work with EDC's cleantech team to accelerate our growth in new urban markets across North America. Support from EDC's investment Matching Program is enabling SWTCH to scale its product offerings, making electric vehicle (EV) charging more convenient and affordable in multi-unit residential and commercial settings. Ultimately, EDC is helping high-potential cleantech companies like SWTCH realize the social, economic, and environmental benefits of a cleaner transportation system.” – Carter Li, Chief Executive Officer, SWTCH Energy Inc

About EDC

Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying all our support is a commitment to sustainable and responsible business. To help Canadian businesses facing extreme financial challenges brought on by the global response to COVID-19, the Government of Canada has expanded EDC’s domestic capabilities until December 31, 2021. This broader mandate will enable EDC to expand its support to companies focused domestically.

For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.